ICF secures contracts over $210 million in Europe

RESTON, Va. - ICF (NASDAQ:ICFI), a provider of consulting and digital services with a market capitalization of $1.46 billion, has secured contracts from the European Commission and the U.K. Government with a combined ceiling value exceeding $210 million. The company announced these contracts, with performance periods spanning four years, were awarded in the first quarter of 2025 and the fourth quarter of 2024. According to InvestingPro data, ICF maintains strong fundamentals with a perfect Piotroski Score of 9, indicating excellent financial health.

These agreements underscore ICF’s expanding presence in the European market. The company plans to deploy a range of services, including policy analysis, communications, research and evaluation, and advanced analytics solutions, to meet the needs of these contracts. With a healthy gross profit margin of 36.5% and revenue of $2.02 billion in the last twelve months, ICF demonstrates solid operational efficiency.

Tobias Schaefer, ICF’s senior vice president for Europe and Asia, stated, "ICF’s recent awards in the European market highlight our ability to deliver cutting-edge solutions that address complex challenges for clients." Schaefer emphasized the company’s strategic investments and commitment to innovation as key factors in their ability to support a diverse and growing range of international sectors.

ICF, with offices in London, Brussels, and other key locations in Europe and Asia, works with international governments, businesses, and organizations to provide innovative solutions that span multiple disciplines and borders. The company’s projects cover various industries, including energy, disaster management, environment and infrastructure, IT modernization, digital transformation, and health.

The company attributes its ability to capture growth opportunities to a balanced portfolio and increasing demand for multidisciplinary services. ICF integrates industry expertise with advanced technology to deliver tailored solutions that aim for sustainable growth and meaningful outcomes for its clients.

ICF, established in 1969, operates globally with approximately 9,000 employees. The company brings together a diverse team of business analysts, policy specialists, digital strategists, data scientists, and creatives to address complex challenges faced by organizations. Currently trading at $77.68, significantly below its 52-week high of $179.67, InvestingPro analysis suggests the stock is undervalued. For detailed insights and more exclusive financial metrics, investors can access the comprehensive Pro Research Report, available to InvestingPro subscribers.

The information in this article is based on a press release statement from ICF.

In other recent news, ICF International reported a slight beat on its fourth-quarter earnings per share (EPS), posting $1.87 against the forecast of $1.84. However, the company’s revenue fell short, coming in at $496 million compared to the expected $500.2 million. The full-year 2024 revenue showed a modest 2.9% increase, reaching $2.02 billion, with adjusted EBITDA rising by 6% year-over-year. Despite these gains, ICF International faces potential challenges due to policy changes impacting its federal segment, which constitutes a significant portion of its business.

Truist Securities adjusted its outlook on ICF International by lowering the price target to $97 from $140 and maintaining a Hold rating, citing the company’s exposure to potential Department of Government and Education (DOGE) budget cuts. Similarly, Canaccord Genuity downgraded the stock from Buy to Hold and reduced the price target to $100 from $200, expressing concerns over federal government contract cancellations and the closure of USAID. Although ICF International’s commercial energy and state and local segments are performing well, the federal segment’s difficulties have led to a conservative guidance outlook.

The company’s recent acquisition of Applied Energy Group aims to bolster its energy program capabilities, aligning with its strategy to enhance commercial growth despite federal challenges. Analysts from both Truist Securities and Canaccord Genuity emphasize the need for clarity regarding future federal budget and procurement activities, which are crucial for reassessing the stock’s potential. As ICF International navigates these developments, the company’s focus remains on leveraging its diverse business segments to mitigate risks associated with federal revenue uncertainties.

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